Small and medium-sized enterprises (SMEs) are the backbone of Europe’s economy with 25.8 million SMEs employing 88.7 million people across the EU. But while SMEs keep things moving, they’re also facing many challenges that threaten their growth and stability. New SME registrations grew by 2.6% in 2023, which sounds promising. On the other hand, bankruptcies rose by 13% during the same time. According to the European Commission, about one in four small businesses fail because they can’t get short-term financing when they need it most.
In France, things are especially critical. The Banque de France reported over 5,000 bankruptcies in September 2024 alone, with March hitting an even higher peak of over 6,000. Of course, not all SMEs are struggling. Many French businesses are thriving and proving they’re still a key pillar of the economy. But these numbers are concerning and highlight just how important it is to help SMEs manage their cash flow and achieve long-term growth and grant access to short-term financing solutions.
To address these challenges, Silvr has partnered with Altassura, an independent firm specializing in financing and client risk protection. Altassura serves as a marketplace for credit insurance and financial solutions such as factoring and invoice financing, making it easier for businesses to secure the support they need to thrive. Through this partnership, Silvr’s financing options are now seamlessly integrated into Altassura’s services—offering SMEs more accessible and effective ways to overcome financial obstacles.
What Challenges Are French SMEs Facing Today?
Post-pandemic recovery hasn’t been easy for Europe’s SMEs, and French businesses have had their fair share of struggles. After COVID-19, increased demand led to supply chain disruptions, and businesses had to deal with hiring issues, rising costs, and high energy prices. On top of all that, late payments are a big issue — putting even more pressure on cash flow.
A recent study revealed that 97% of French businesses offer payment terms to customers, with the average payment term rising to 51 days in 2024. This is much higher than for example Germany’s 32-day average. Additionally, 85% of surveyed businesses reported experiencing late payments, with sectors like automotive, energy, and construction particularly affected. For SMEs, delayed payments can disrupt operations and jeopardize financial stability.
Factoring vs. Invoice Financing: What’s the Difference?
To manage cash flow, SMEs often turn to solutions like factoring and invoice financing. Both options can help businesses get quick access to cash, but they work in different ways. Let’s break it down:
Factoring
Factoring involves selling unpaid invoices to a third-party factoring company, known as a “factor.” Here’s how it works:
- A business enters an agreement with a factor to sell outstanding invoices.
- The business invoices its customers and sends copies to the factor.
- The factor advances 80-90% of the invoice value to the business.
- Customers pay the factor directly, and the remaining amount is released to the business minus a factoring fee.
Why businesses choose factoring:
- Outsourced Collections: The factor handles chasing payments, so you don’t have to.
- Steady Cash Flow: You get predictable inflows of cash to help manage expenses.
- Lower Risk: Factors run credit checks on your clients to reduce the risk of non-payment.
But there are drawbacks too:
- Less Control: The factor handles customer payments, which might not align with how you’d do it.
- Higher Fees: You pay fees based on the risk of late or non-payment.
- Limited Eligibility: It’s mostly suited for grade A B2B businesses with large invoices.
Factoring is a great fit for industries like manufacturing, wholesale, and logistics, where businesses have to wait on big invoices but still need cash flow to keep things running.
Invoice Financing
Invoice financing, on the other hand, is a form of short-term loans. Unlike factoring, the business retains control over payment collection.
Why businesses choose invoice financing:
- Customer Control: You stay in charge of customer payments, maintaining those important relationships.
- Confidentiality: Customers don’t know you’re using financing, so it doesn’t affect trust.
- No Interference: You manage collections, keeping things on your terms.
But here’s the downside:
- Higher Costs: Fees and interest rates can add up, cutting into your profits.
- Risk Stays with You: If your customer doesn’t pay, you’re still liable for the loan.
- Short-Term needs: It’s not a long-term fix—just a quick cash flow boost.
- Flexibility: Invoice Financing only applies to B2B companies with outstanding invoices.
Invoice financing works well for businesses that need flexibility and want to stay in control of customer interactions while covering short-term financial needs.
How Silvr and Altassura Are Helping SMEs Thrive
Silvr is all about offering flexible, tailored financing solutions to help SMEs tackle cash flow problems, finance growth, and achieve their goals. Whether you need help with unpaid invoices, inventory, or working capital, Silvr has you covered.
Altassura brings its expertise in client risk management and cash flow optimization. They’re like your go-to marketplace for credit insurance, factoring, and other financial tools.With Silvr now integrated into Altassura’s services, clients can easily access Silvr's short-term financing solutions directly through Altassura’s platform.
Short-Term Financing with Silvr
Silvr’s financing solutions are designed for speed and simplicity.
- Fast Eligibility Checks: See if you qualify online in minutes.
- Quick Loan offer: receive your loan offer in 48 hours and funds in as little as two working days.
- Ongoing Support: Renew your financing or get new advances as your needs grow.
Silvr’s short-term financing solutions are tailored to SMEs across all industries in France and Germany. To qualify, businesses must have been operational for at least six months and demonstrate a minimum monthly turnover of €7,000 over the past three months.
By teaming up with Altassura, Silvr ensures SMEs in France have access to financing solutions that help them grow while staying financially stable. Whether you’re looking for short-term cash flow fixes like invoice financing or a longer-term growth boost, this partnership is designed to help your business succeed.
